Product
Development Essentials for Engineers

Product Development Benefits

Why the Need for Product Development Essentials?

Small manufacturers need to bring new products to market or
develop existing ones, but often do not know how to do this in a structured efficient way, that minimises
risks to the existing business. What they need is clear instructions, together with proven tips and techniques used by
the best businesses, yet tailored and kept simple, specifically for small
manufacturers.

Note: ‘Product Development’ referred to here, is often called ‘New Product Development (NPD) or ‘New Product Introduction’ (NPI) in industry descriptions and technical publications. For reference, this section covers and applies to the development of both ‘New Products’ like NPD and NPI, as well as the redesigned of existing products, for example value analysis or cost reduction projects.

Product Development Benefits

The Business
Justification for Product Development

Small manufacturing businesses are having to compete in
extremely tough trading conditions. The everyday business of getting orders in,
shipping products out, chasing payment and maintaining cash flow are challenging
enough. Meanwhile globalisation and cheaper labour costs elsewhere, have added
further pressures. Some small manufacturers have responded by becoming leaner
and reducing their operating costs and this is a great start. However, for any
sector, only one company can be the cheapest.

Nevertheless, to really compete, fight back and ultimately thrive,
the best small businesses have had to innovate. They have made a conscious
decision to do things differently and better. Developing new products provides a means to target new markets, increase
market share, sell more and increase revenue streams. Meanwhile redesigning
existing products enables costs to be cut, margins to be increased and
ultimately more profits to be made.

Commercial business aside, developing great products is
hugely rewarding and something most design engineers strive for; products that
are desirable, totally reliable and are intuitive and user-friendly. Having
good ideas is one thing, possessing an effective process to deliver a great
product the way you conceive it, is something quite different.

High performing small manufacturers are proactively planning
and managing their product development activities. They have developed product
develop processes tailored to their needs and are using techniques that add
real value. They are listening specifically to what customers want in terms of functions,
new products and complimentary customer service. This also involves seeking
ideas and opinions from all those who interact with the product throughout its
life cycle.

The best small manufacturing businesses are also collaborating and
working with a range of individuals and organisations, to learn and improve
their product development processes. All of this is aligned to the broader aims
of the business.

It should be noted product develop carries some risk. If
executed poorly it can have potentially significant consequences for a small
manufacturer. The good news is small
manufacturing businesses naturally have some great advantages to increase the
probability of success.

They have flatter organisational structures and so
are capable of making faster product development decisions. They are also often
closer to their end customers and so can rapidly seek feedback and are
subsequently more responsive.

The question is how to get closer to what the best are
doing, above, rather than what rest are doing; which sadly to often is drifting
or floundering because they are unfamiliar with structured product development.

Product Development Benefits

Why Product
Development Needs to be Tightly Tailored to YOUR Needs?

To stay competitive, thrive and prosper, small manufacturers
need to get products to market quickly, rapidly moving through the development
process at pace. A lot has been written about product development with diagrams
often depicting a sequential process with multiple stages and review gates.
However, the problem with this is it can initially look long-winded and slow.

If this is the impression employees have, then the likelihood is the process
will not be used, as the pressure of getting products out by a given date often
trumps everything. Alternatively, crucial tasks may be missed or rushed.

Any process has to take into the account the aims and
circumstances of your business. What are your product development objectives
and by when? How does this fit into broader business strategy? This last point
is really important. Any product development strategy has to be aligned to that
of the business. For a start, it will need to obtain senior management commitment, not to mention resources.

Your
situation will be unique and so these considerations cannot be ignored. The product
development process should be tailored to achieve these aims, rather than being
a generic one, perhaps supplied by a slick consultant.

What designers and engineers actually need is a robust
process that is flexible yet relevant, such that it will be followed and so
produce successful products. What’s more the product development process needs to be fast-paced, with activities
running concurrently where possible. Teams from across the business should work
towards the common goal, bringing in external help when necessary. A strong
sense of leadership, together with discipline, help drive the process forward
and assist it to run smoothly.

Factors for Developing Great Products

Product Development Benefits for Small Manufacturing Businesses

﻿

The following points list how small manufacturers can
directly benefit from product development activities:

Bottom-line Benefits

Increase revenue - new products provide you with new
revenue streams.

Redesign of existing products can decrease costs and so
increase margins. The driver for this could be in response to competition.

Reduced defects and better quality, partially through
better designed production and assembly methods. But also due to a more
robust design process.

More sales, through wider distribution.

Increase market share.

Improved Competiveness Benefits

Innovate to develop new products or product variants, to
beat competition in regional, national and global markets.

When was the last time your business developed a NEW product? ...Or is 'Product Development' too far removed from your core Production Engineering activities?

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